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Stellantis won't race to split electric vehicles from fossil fuel cars

MILAN - Stellantis is not considering splitting its electric vehicle (EV) business from its legacy combustion engine operation, its finance chief said on Thursday, as the carmaker presented above-expectation revenue data for the first quarter. Chief Financial Officer Richard Palmer told analysts he did not see huge benefits in the kind of separations pursued by rivals such as France's Renault and U.S. Ford. "We need to manage the company and the assets we have through this transition," he said. "There are benefits to having the cash flow being generated by the internal combustion business for the investments we need to make." Palmer said the group, formed by a merger last year of Fiat Chrysler and Peugeot maker PSA, was not averse to considering adjusting its structure "but we aren't anticipating any big changes." Palmer's comments came after the world's fourth largest carmaker said its net revenue rose 12% to 41.5 billion euros ($44.1 billion) in the January-March period, as strong pricing and the type of vehicles sold helped offset the impact of the semiconductor shortage on volumes. That topped analyst expectations of 36.9 billion euros, according to a Reuters poll. Milan-listed shares were up 0.5% by 1415 GMT, in line with Italy's blue-chip index. The impact of the chip crunch was evident in the decline in shipment figures which fell 12% in the quarter to 1.374 million vehicles. It was a similar story for Germany's BMW which posted higher revenues on Thursday and a decline in car sales. Riding the Recovery Stellantis, whose brands also include Citroen, Jeep and Maserati, confirmed its 2022 forecasts for a double-digit adjusted operating income margin, after 11.8% last year, and a positive cash-flow despite supply and inflationary headwinds. Morgan Stanley analysts said after the results that Stellantis had better management than many peers and benefited from its significant exposure to a stronger U.S. economy and a European recovery from the COVID-19 pandemic. They also said it was less affected by a slowing Chinese economy. Palmer said it was important for the group to maintain double-digit margins and keep delivering positive cash flows. "A 12% increase in revenue with a 12% decrease in volumes indicates a very strong performance on price and mix, which augurs well for our margin performance," he said. He said semiconductor supply problems were expected to ease this year with continued improvements in 2023.

Chrysler resolves recall issue with NHTSA, will inspect, upgrade affected Jeeps

Chrysler made big news earlier in the month by refusing a recall request from the National Highway Traffic Safety Administration for the 1993-2004 Jeep Grand Cherokee and 2002-2007 Jeep Liberty. Last week, NHTSA boss David Strickland countered by defending his agency's request for the recall of 2.7 million Jeep SUVs. Today marked the deadline for Chrysler to formally respond to NHTSA, and it seems that both parties have met in the middle with Chrysler inspecting and upgrading some of the affected vehicles without using the word "recall," which would constitute the admission of a defect; instead, Chrysler said that it is conducting a "voluntary campaign."
At issue on these vehicles is the positioning of the fuel tank behind the rear axle that could get damaged during a rear-end collision. NHTSA has stated that at least 51 people have been killed in rear-end collisions involving these Jeeps after the vehicles caught fire, to which Chrysler countered by pointing out that both models "met and exceeded" the requirements for fuel-system integrity.
As a compromise on the situation, Chrysler says that it will inspect all pre-2004 Grand Cherokees and pre-2007 Liberty models and, "if necessary, provide an upgrade to the rear structure of the vehicle." According to Automotive News, this upgrade will consist of adding a trailer hitch that will presumably better protect the rear-mounted gas tank. Vehicles already equipped with a factory or Mopar hitch will not be modified. Chrysler's official statement on the matter is posted below, but no additional information has been released, such as when the campaign will begin and how many vehicles could be affected.

Jeep Grand Cherokee Trackhawk set for New York debut

The head of Jeep confirmed Wednesday that the brand will reveal its high-powered Grand Cherokee Trackhawk in April at the New York Auto Show. "That is going to be quite a special vehicle," Jeep boss Mike Manley said. "Very difficult for one not to smile." Speaking at an event at FCA US headquarters in Auburn Hills, MI, to preview the 2017 Easter Jeep Safari vehicles for Moab, he didn't provide further details. The Trackhawk has been expected to bow in New York, and the confirmation comes after months of rumors and spy shots. What's under the hood? The blown 6.2-liter Hemi Hellcat from the Charger and Challenger is the overwhelmingly obvious choice. The V8 engine makes 707 horsepower in the Dodges. The most potent current Grand Cherokee, the SRT model, is rated at 475 hp. Jeep also already sells a Grand Cherokee Trailhawk for off-road adventures. Meanwhile, Manley reiterated the next-generation Wrangler will debut by the end of the year, as expected. The New York show is shaping up to be a blockbuster event for FCA US, which will also debut the Dodge Challenger SRT Demon on the eve of the show next month. Related Video: